US President Donald Trump on Monday warned that China must guarantee supplies of rare earth magnets to the United States or face tariffs of up to 200%. Speaking alongside South Korean President Lee Jae Myung at the White House, Trump also said he would continue to allow Chinese students to study in the US.
"They have to give us magnets, otherwise we have to charge them 200% tariff or something," Trump told reporters. He acknowledged, however, that such duties would effectively end bilateral trade.
"We have a much more powerful thing — tariffs. If we put 100% or 200% tariffs on, we wouldn't do any business with China," he said. "It would be OK if we had to. But on magnets, we have tremendous leverage over them, and they have some leverage over us."
Trump added that the US holds "incredible cards" in trade negotiations with Beijing but insisted he does not wish to use them. "If I played those cards, that would destroy China," he said, without further explanation.
The remarks underscore a harder line compared with Trump's more conciliatory tone earlier this month, when he postponed by 90 days the implementation of a new round of tariff hikes on Chinese goods.
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